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5 Groups Exempt From Taxes

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No U.S. citizen is exempt from paying taxes if they owe them to either the federal government or to their state. Their incomes may be exempt from taxation, however, so they don't owe anything. They may be exempt from filing because they don't owe any tax due to other tax provisions.

Five broad categories of U.S. taxpayers are exempt from the federal tax process. It can sometimes be a good idea to file, however, just to establish that you don't owe anything for one of these five reasons.

Key Takeaways

  • U.S. citizens who work abroad may not have to file and pay taxes to the Internal Revenue Service (IRS) if they meet specific criteria.
  • Religious organizations are exempt from paying taxes.
  • Some low-income taxpayers may be exempt from paying taxes.
  • Taxpayers who are eligible for many deductions may be able to avoid paying by filing a return and claiming them.

1. Not-for-Profit Organizations

Section 501(c)3 of the Internal Revenue Code (IRC) dictates that any organization that qualifies to be classified under this section is exempt from paying 澳洲幸运5官方开奖结果体彩网:income taxes.

Qualifying organizations include religious, educational, and humanitarian entities such as churches, synagogues, universities, hospitals, the Red Cross, homeless shelters, and other groups that seek to improve our society.

2. U.S. Citizens Working Abroad

You may not have to pay taxes to Uncle Sam on the income you earn there if you live and work overseas, Americans can earn up to $126,500 working abroad before they have to pay taxes for tax year 2024 because the IRC provides a foreign earned income exclusion. It's indexed for inflation. The amount is $130,000 for tax year 2025.

Some expatriates receive additional benefits. They're permitted to exclude or deduct housing costs from their incomes but a taxpayer must meet specific requirements to qualify. They must be residents of a foreign country or physically present in a foreign country for at least 330 full days in a year.

3. Low-Income Taxpayers

You don't have to pay taxes or file a tax return if you earn an income that doesn't exceed the amount of the 澳洲幸运5官方开奖结果体彩网:standard deduction for your filing status. A married couple must earn at least $29,200 in 2024 before they're required to file a tax return in 2025 if each spouse is under age 65. For tax year 2025, a married couple must earn at least $30,000.

The income requirements for this rule are:

Filing Status (in 2024) File a tax return in 2025 if your gross income was:
Single, under 65 years old $14,600 or more 
Single, 65 years or older $16,550 or more
Married, filing jointly, both spouses under 65 years old $29,200 or more
Married, filing jointly, one spouse 65 years or older $30,750 or more
Married, filing jointly, both spouses 65 years or older $32,300 or more
Head of household, under 65 years old $21,900 or more
Head of household, 65 years or older $23,850 or more
Filing Status (in 2025) File a tax return in 2026 if your gross income was:
Single, under 65 years old $15,000 or more 
Single, 65 years or older $16,600 or more
Married, filing jointly, both spouses under 65 years old $30,000 or more
Married, filing jointly, one spouse 65 years or older $31,600 or more
Married, filing jointly, both spouses 65 years or older $33,200 or more
Head of household, under 65 years old $22,500 or more
Head of household, 65 years or older $24,100 or more

You probably won't owe any taxes if the only income you receive is your Social Security benefit.

4. Taxpayers With Many Deductions

Some taxpayers can write off most or all their taxable incomes by claiming deductions. Someone who incurs a substantial medical bill may be able to claim this on Schedule A as an unreimbursed medical expense. This can drastically reduce their taxable income, possibly to the point where it falls below the taxable threshold.

Filing Schedule A means itemizing your deductions, however. You can't itemize to claim these expenses and claim the standard deduction for your filing status, too. You must choose between one option or the other.

Important

Schedule A includes numerous itemized deductions. Add them up and compare the total to the amount of the standard deduction for which you qualify and then use the larger option. You'll otherwise pay taxes on more income than you have to.

5. Taxpayers With Many Dependents

Lower-income families with dependent children might not have to pay taxes if they qualify for the 澳洲幸运5官方开奖结果体彩网:Earned Income Tax Credit (EITC) and other child-related tax credits.

A married couple with three or more children can qualify for a maximum EITC of $7,830 for tax year 2024 and $8,046 in 2025. This isn't a deduction from income. Tax credits subtract from your tax bill dollar for dollar.

Taxpayers who don't have children can qualify for this tax credit as well. A single person with no children can claim a maximum EITC of $632 in 2024 and $649 in 2025.

Other dependent-related tax credits include the Child Tax Credit and the Child and Dependent Care Credit.

Who Does Not Have to Pay Taxes?

You generally don't have to pay taxes if your income is less than the standard deduction or the total of your itemized deductions, if you have a certain number of dependents, if you work abroad and are below the required thresholds, or if you're a qualifying non-profit organization.

How Can I Receive Money and Not Pay Taxes?

You have to pay taxes on the money in most cases if you receive income but there are exceptions. Some situations where you receive money and don't have to pay taxes on it include disability insurance payments, 澳洲幸运5官方开奖结果体彩网:health savings accounts (HSAs), employer-provided insurance, life insurance payouts, financial gifts, and inheritances except at the state level.

At What Age Do You Stop Filing Taxes?

There's no age at which individuals are exempt from filing taxes. The obligation to file is determined by income, filing status, and other factors. How much of your Social Security benefits are taxable also depends on multiple factors and can be determined by filling out an IRS worksheet.

The Bottom Line

Some taxpayers in the U.S. such as 501(c)3 organizations are automatically exempt from taxation. Otherwise, it's possible to reduce your tax burden by claiming all deductions and credits you qualify for. You might want to consider consulting with a tax professional to ensure that you don't miss claiming a tax break for which you're eligible.

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